OREANDA-NEWS. July 12, 2012. Following 2011 Azerbaijan’s insurance companies outfooted bank sector on paces of profitability growth increasing their financial profit by 23.6% versus 14,8% net profit rise ( before taxation) of the country banks.

State Insurance Supervision Service under Finance Ministry of Azerbaijan reports that in 2011 insurance companies rose financial profit up to AZN 46.45 million versus AZN 37.57 million in 2010.

Total income of insurers in 2011 made AZN 273.29 million versus AZN 227.25 million a year earlier , including AZN 266.73 million from major activity ( AZN 204.74 million), AZN 23.46 million ( AZN 19.91 million) from investment incomes. Although change in the cost of net insurance reserves caused loss for AZN 20.67 million to the companies versus AZN 630.000 income in 2010, it did not influence their profitability.

Last year the insurers’ total expenses rose to AZN 226.84 million versus AZN 189.68 million in 2010, including AZN 159.82 million( AZN 136 million) for major activity and AZN 63.29 million ( AZN 51.05 million) on administration.